Equity Briefing: Ferrexpo, Robert Walters and Ten Entertainment
Joshua Warner July 7, 2021 1:19 PM
Miner Ferrexpo will provide a production update this morning, while recruitment specialist Robert Walters and bowling alley operator Ten Entertainment are both due to publish trading updates today.
Want the latest news to come to you?
You can get the latest market-moving news and incisive insight sent straight to your inbox every day, including the Equity Briefing, by subscribing to receive our market commentary updates.
Iron ore pellet producer Ferrexpo is scheduled to release a second-quarter production report this morning. These updates are usually short and sweet and focus on operational progress rather than financials.
The miner, which produces the pellets from a series of mines based in Ukraine so companies from around the world can make steel, has largely managed to avert any significant disruption to its operations during the pandemic but has been busy upgrading pelletiser lines. This has temporarily lowered output. Overall production was down 12% quarter-on-quarter in the first three months of 2021 as a result, but was still 2% higher than the year before.
Work is ongoing in the second quarter so it should be a similar scenario, but it will boost capacity by 500,000 to 1.0 million tonnes per year once completed.
The production report will set the stage for its interim results that will be published on August 4.
Robert Walters is set to publish a trading update today covering the second-quarter of 2021.
The specialist recruitment company was hit hard by the pandemic last year as businesses halted hiring and job losses increased. Although the market remains tough, things are improving. Net fee income in the first quarter was down 11% year-on-year compared to the 26% drop reported in 2020 as a whole, and Robert Walters said in June that the positive momentum had continued into the second quarter.
Asia, its biggest market, has been leading the steady recovery and it has returned to growth in countries like Spain, China and New Zealand this year. Notably, the company raised its full-year expectations as a result and its second-quarter results should benefit from weaker comparatives as it starts to come up against pandemic-hit periods.
Ten Entertainment is due to release a first-half trading update this morning.
Investors have not been updated since March, when it published annual 2020 results that revealed revenue more than halved and losses widened as its bowling alleys were forced shut for much of the year.
That will have remained the situation for most of the first-half of 2021 considering sites were only reopened on May 17. Therefore, the focus will be on how it has performed since then, having previously said it expected to benefit from strong pent-up demand as lockdown eased, and on the outlook going forward – especially after the government announced all legal coronavirus restrictions will be removed on July 19 and allow businesses like Ten Entertainment to operate as normal.
It will also be the first update since independent director Adam Bellamy became non-executive chairman to help oversee the company’s reopening and return to growth.
How to trade top stocks
You can trade a variety of stocks with City Index by following these four steps:
- Open a City Index account, or log-in if you’re already a customer.
- Search for the company you want to trade in our award-winning platform
- Choose your position and size, and your stop and limit levels
- Place the trade
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.